Do You Need A Merchant Account?

Deciding when to get your own merchant account for internet sales can be a confusing and expensive venture. If you have a small to medium sized business and only sell a small amount of products then having your own merchant account may not be the answer for you. Some of the costs involved include.

Monthly fees. Anywhere between $25-$50 for statements and minimum fees.

Per transaction and charges fees. Usually between 2%-3.5 % in fees and .30-.50 per transaction.

Gateway fees. $10-$30 per month

SSL certificate. Can be as much as $250

Shopping cart fee or software purchase. Monthly can range $20-$70 and software purchase can be as much as $1400.

In addition to the cost is the technical aspect of setting up your site to use a shopping cart and real-time processing. Not all gateways, merchant accounts and shopping carts play well together. You must make sure that each can work with each other. Plus be prepared to properly set up your web server to use all this nice technical information the accounts give you.

Now, if you are a larger business or do a lot of sales each month perhaps your own merchant account is the answer for you. It can save you money in the long run. But if you are just starting out with an online business, then a third party merchant may be the answer for you. Third party merchants handle all the background details, pay the monthly fees, assume the risks of fraud and charge backs, and handle all the secure shopping your customers will expect when shopping online. While the monthly fees may be a bit higher, there usually isn't a set up charge, gateway fees, SSL charges and shopping cart set up. Depending on the service you choose, they can give you simple HTML code to add to your site or allow you to use "buy buttons" or both. Fees range anywhere from 5% to 13.5%. Some companies charge a set up fee and a per transaction fee.

Then there is always Paypal. A useful service for new comers to the online payment arena but it has its drawbacks. With Paypal:

Your customer must set up an account with them

They can FREEZE your account

They can set limits on monthly transactions

I suggest you explore all your options and decide what is best for you financially and technically. A little research online can save you money and time in the long run.

About The Author

Jim Hoffman is the co-founder of Inet Goodies. An internet resource group, focusing on SEO, Hosting, Billing solutions and Traffic.

http://seogoodies.com

admin@inetgoodies.com

In The News:


pen paper and inkwell


cat break through


How to Boost Conversion Rates, While Lowering Merchant Account Fees!

Using an Address Verification System (AVS) when processing your online... Read More

Intranet Portals ? Personalisation and Customisation

The key difference between an (old-fashioned) Intranet and a PortalWhat... Read More

Looking For Free Advertising, Here It Is!

There are lots of ways to advertise for free but... Read More

Intranet Portals ? Collaboration through Team Rooms

Knowledge Management for beginnersKnowledge Management (KM) can be defined simply... Read More

Start doing online business using B2B Portals in Six Steps

I registered with a B2B site but what's next?This is... Read More

Shopping Cart Usability

Usable Shopping Carts Increase SalesE-commerce has been around since 1993... Read More

How to Receive Payments for Your Online Sales

Once you decide which products you are planning to sell... Read More

Increasing E-Commerce Website Sales: A Guide for the Online Newbie

Because of this encouraging surge in activity, many individuals are... Read More

Shopping Carts and the E-Aisles

Have you ever gone to the store and thought you... Read More

Do You Need A Merchant Account?

Deciding when to get your own merchant account for internet... Read More

The House Of Print.Com

Publishing has always been a difficult business to promote successfully,... Read More

Using Drop Shipping for E-commerce

Thanks to the ubiquity of the internet, online virtual businesses... Read More

Internet Merchant Accounts For Innocents Abroad

If you want to sell on the internet, your need... Read More

Accept Credit Cards Online Without A Merchant Account

It is often assumed if you want to accept credit... Read More

Cyber Banking

The use of electronic cash as a means of transacting... Read More

Why Arent People Buying From Your Ecommerce Website?

Your stock is tempting, your prices right - your ecommerce... Read More

Projecting Your Image

Whether you sell a product or merely sell time to... Read More

E-Commerce Is Back On The Fast Track

How much holiday shopping did you do on-line this year?... Read More

Choosing the Right Online Shopping Cart

Are you a website owner or a web designer/developer? If... Read More

How Merchant Accounts Can Save You Money

We all know that accepting credit cards is the key... Read More

Tell Them Whats in The Can!

What does 'the can' mean? Well, its literal meaning relates... Read More

Beginner Ecommerce Mistakes

This is a short article because in the constraints of... Read More

Chinas IT Industry to Maintain Fast Growth

China's IT industry is expected to see a sales revenue... Read More

Developing a Winning e-Commerce Strategy

One bright spot on the economic horizons around the world... Read More

12 Powerful Ways To Use Autoresponders That Will Take YOU To The Top

If only I had known that autoresponders are a necessity... Read More

A Tale of Two Revolutions - Ecommerce: A Historical Perspective

The World As It Then WasThe dynamic economic growth of... Read More

Choosing an Ecommerce Shopping Cart

Choosing an online shopping cart is a big decision. Unlike... Read More

How To Eliminate Credit Card Refunds From Digital Thieves

Can you encounter the number of times where a Credit... Read More

Keep Your Customers Happy by Organizing Your Payment Options

Anyone using a slow, or an awkward payment processor had... Read More

Online Business- What Makes It a Success!

Only a few manage to sell everything under the sun... Read More

Intranet Project ? RAD or Waterfall?

Building BridgesI have often used the analogy of building a... Read More

Drop-Shipping ? A Great Way of Making Money Online

Using the Internet to sell products and services to ever... Read More

The Top 10 E-Commerce Ways to Follow up with Clients - Part 1

Did you know that 80% of all sales are made... Read More